REGION: Menifee, Wildomar still without license fee funds

City officials in Menifee and Wildomar were hoping for good
budget news over the weekend, but instead they're still clutching
empty money bags that once were filled with vehicle license fee
revenue from the state.

Now Riverside County's four recently incorporated cities ----
Jurupa Valley and Eastvale, as well as Menifee and Wildomar ----
will have to wait until at least January before renewing their
hopes that revenue from the state will be restored.

"It's not dead, but it's on life support," Jeffries said of the
proposal to restore the funding. "Our cities have to plan for the
worst and hope for the best. It will be taken up again in January,
where it may get more get more attention because we understand
(Gov. Jerry Brown) wants to take a closer look at budget
issues."

However, all of California's most recently incorporated cities,
all in Riverside County, relied heavily on those fees because they
were receiving a larger share than other cities to help them get
started.

The cities have three main funding sources ---- the license
fees, property tax revenue and sales tax revenue. Without the fees,
Menifee loses about 16 percent of its anticipated general fund
revenue for the current budget year, while Wildomar is out about 22
percent.

Information released by the League of California Cities
indicates that if the funding isn't restored, the cumulative loss
by the 2016-17 budget year will be $8.8 million in Wildomar and
$18.9 million in Menifee.

Wildomar already has made cuts to reflect the loss of fees. The
city has sliced $1.5 million from its expenditures, with most
coming from its public safety budget. City Hall's hours have been
reduced to four days a week, and city administrators have taken a
pay cut.

"Without the fees, it makes it very tough for us to provide
service at the levels we envisioned when we incorporated,"
Assistant City Manager Gary Nordquist said.

There has been very little said about the fee cuts on the City
Council level in Menifee. But that doesn't mean city staff members
haven't been thinking about it.

With the amendment's failure last week in Sacramento, Menifee
City Manager Bill Rawlings said the city can no longer move forward
without discussing spending cuts.

"It's a serious setback, but not as bad as some of the other
cities," said Rawlings, pointing out the council has set aside
reserves equal to about 25 percent of the city's $24 million
budget.